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Russian Government Rolls Out New Business Initiatives

15. February 2010 by Gregg 0 Comments

Pushing to improve a financial deficit and abandon some of the policies of the former Soviet governments, Russian President Dmitry Medvedev has announced the Kremlin’s new plan to sell off and effectively privatize some more elements of Russian business which the government had previously owned stakes in.

Russian shipping company Sovkomflot is currently set to be on the auction plot, unless the President decides against it. Prime Minister Vladimir Putin approved the company’s sale late last year. Names of current Russian companies that the government may want to sell stakes in weren’t mentioned by name, but were suggested to include Russian telecommunications companies, media outlets and oil producers.

This has come after a call the same day for private business to partner with the Government of Russia to help modernize the country. A meeting with prominent Russian businessmen resulted in many new announcements – a low-budget car that would run off liquefied natural gas, a solar panel factory and a promise of a “City of the Future” which would exist as a center for research and development in the country and would be a test-site for a modernized economic policy.

Private investment in Russia is around $232 billion dollars currently, the proposal from President Medvedev and Russian Finance Minister Alexei Kudrin is encouraging an increase in investment to $463 billion. Government funds to assist the modernization project were promised, although they would depend on the presentation of new projects.